Alibaba has an overallotment option to sell additional shares to increase the total IPO proceeds to $24.4bn. The company is expected to have about 2.5bn shares outstanding following the offering.

"From the very beginning our founders have aspired to create a company founded by Chinese people but that belongs to the world," Ma said in a regulatory filing with the US Securities and Exchange Commission.

The IPO would beat Facebook's $16bn share offering in 2012 as the biggest share sale by an internet company.

Alibaba is due to start an international roadshow in New York on 8 September, and it will decide on the final IPO price following the event.

It plans to list the shares under the ticker symbol "BABA" on the NYSE.

Alibaba controls about 80% of online retail sales in China through its websites including Taobao, Tmall, and AliExpress. The company recorded a 46% increase in revenues to $2.54bn for the quarter ended in June, in line with China's rising internet usage.